"Upstream production is expected to reach 3.5 million barrels of oil equivalent per day in 2012, an increase of 11 percent from 2009," Shell said in a statement.

"In addition, the company is assessing over 35 new projects from some eight billion barrels of oil equivalent resources (boe), which should underpin upstream growth to 2020," the company added.

The forecast was broadly in line with the company's previous guidance for a production increase of between 2.0-3.0 percent per year. Shell also said it had "confidence in further growth beyond 2012".

The Anglo-Dutch group added that its reserve replacement ratio -- or the rate at which production is replaced by new oil discoveries -- hit a record 288 percent in 2009.

That means that the group replaced proven oil and gas reserves much faster than they were depleted.

"These are exciting times for Shell," said chief executive Peter Voser in the release.

"We are poised to deliver a new wave of financial and production growth. We are making substantial investments in new projects to drive Shell's financial performance going forward."

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